Amy Wu Silverman, head of derivatives strategy at RBC Capital Markets, noted that Tuesday's options activity was a mix of traders taking profits on exiting hedges and some call buying, with next week's Federal Reserve policy meeting keeping traders from abandoning all caution.Still, with some calm returning on Tuesday, options traders' dialed back expectations for more near-term fireworks from the sector.
The 30-day implied volatility for XLF - a gauge of how much the ETF's shares are expected to gyrate in coming days - fell to 28%, down from a one-year high of 36% touched in the previous session. "The volatility spike that we saw the other day was one for the record books and that in my mind needed to be faded," said Purves.
More Government funded MSM propaganda 🙄
I would be watching Wells Fargo